RESIDENTIAL RESEARCH - Microsoft...RESIDENTIAL RESEARCH MARKET ACTIVITY REPORT FOR AUSTRALIAN...

RESIDENTIAL RESEARCH

MARKET ACTIVITY REPORT FOR AUSTRALIAN CAPITAL CITIES & REGIONAL CENTRES

http://www.knightfrank.com.au/

2

The official cash rate target

remained at 1.50% on 7 February

2017. Gross Domestic Product

was recorded at 1.8% annual

growth to September 2016.

Unemployment across Australia grew to 5.7%, in the quarter

ending November 2016.

The weighted average of

Australian capital cities house

values rose 1.2% in the month of

December 2016 (4.5% annual

growth) to $729,500; while

apartment values were down 0.7% over the month (2.9%

annual growth) to $547,000.

In the year ending December

2016, the volume of house sales across Australian capital cities

was up 3.3% to 200,839; while

129,386 apartment sales were recorded (up by 1.4%).

Gross rental yields across

Australian capital cites houses

recorded a weighted average of 3.77% in December 2016, while

Australian apartments achieved

4.45%.

Weighted average of Australian

capital cities weekly house rents

were $495 in December 2016;

whilst apartment rents were $455 per week, both remaining

steady.

A weighted average total

vacancy for Australian residential

property was last recorded at

3.1% in September 2016; trending up 20 bps in the last

quarter.

Knight Frank Residential Research

National Key Economic Indicators

change. Total housing finance for

investors and owner occupiers (excluding

refinancing) has also cooled. Since May

2016, annual housing finance growth has

compressed 4% from $302.2 billion to

stand at $300.2 billion in November 2016.

As investors once again shift their focus

from capital growth to rental growth,

looking back over 2016, houses across

the capital cities recorded an increase in

rents of just 0.3%, whilst apartment rents

grew 0.8%. It is likely 2017 will see

similar growth given total vacancy was

trending slightly above equilibrium at

3.1% in September 2016, up 20 bps from

June 2016.

Looking back to Q3 2016, across key

Australian regional centres, apartments in

Darwin recorded the highest gross rental

yield at 5.87%. The next three regional

centres to follow represent houses

located outside the metropolitan area, in

the Riverina (at 5.84%), Country

Tasmania (at 5.82%) and North West

South Australia (at 5.80%).

As entry price points into major capital

cities around Australia continued to push

upwards in 2016, buyers have redirected

their investment into regional areas with

better returns around the country.

Of the top 15 key regional centres for

gross rental yield performance, 11 were

In their first meeting of the year, the

Reserve Bank of Australia (RBA) decided

to leave the official cash rate unchanged

at 1.50% on 7 February 2017.

RBA cited the improvement in global

conditions has led to higher commodity

prices, providing a boost to Australia’s

national income. Despite the weaker GDP

released for the September 2016 quarter,

the RBA believes the Australian economy

is continuing to transition well following

the wind down of the mining investment

boom. They expect GDP growth to be

more positive in the December 2016

quarter.

Throughout 2016, the weighted average

of Australian capital cities house values

increased 4.5% to $729,500, whilst over

the same time apartment values grew a

total 2.9% to $547,000. Given the volume

of house sales across Australian capital

cities was up 3.3% and apartment sales

were up 1.4%, it’s likely positive capital

growth will continue further in 2017.

Although it’s not expected to perform as

strong as recorded in the past 36

months.

Residential building approvals across

Australian capital cities have trended

downwards for the third consecutive

month to December 2016—Greater

Darwin (at –31.5%) and Greater Hobart

(at –24.9%) experiencing the greatest

-6%

-4%

-2%

0%

2%

4%

6%

Mar-

16

Ju

n-1

6

Sep

-16

Ju

n-1

6

Sep

-16

Dec-1

6

Jul-

16

Oct-

16

Feb

-17

May-1

6

Aug

-16

No

v-1

6

Ju

n-1

6

Sep

-16

Dec-1

6

GROSS DOMESTIC

PRODUCT,

ANNUAL GROWTH

UNEMPLOYMENT RATE CASH RATE TARGET HOUSING FINANCE,

ANNUAL GROWTH,

BY VALUE

(excl. refinancing)

TOTAL BUILDING

APPROVALS ANNUAL

GROWTH

http://www.knightfrank.com.au


3

RESEARCH AUSTRALIAN RESIDENTIAL REVIEW FEBRUARY 2017

located outside the metropolitan areas of

the capital cities, as shown in Figure 2.

Average weighted gross rental yields

across the Australian capital cities were

recorded at 3.85% for houses and 4.50%

for apartments in September 2016. By

the end of December 2016, this

compressed to 3.77% and 4.45%,

respectively.

Despite a more sustainable capital

growth being recorded across Australia

for 2016, capital growth continues to vary

at differing paces across Australian

capital cities as shown in Figure 3.

In Q3 2016, the Knight Frank Global

Residential Cities Index recorded the

annual capital growth of 150 capital cities

around the world. Overall, residential

prices increased in 77% of the 150 cities

year-on-year. Thirteen cities recorded

price rises in excess of 20% in the year

Global Residential Cities Index Q3 2016, Ranked by annual capital growth % change

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

Darw

in N

T (A

)

Riv

erin

a N

SW

(H

)

Co

un

try T

as (H

)

No

rth W

est

SA

(H

)

Co

un

try T

as (A

)

Go

ld C

oast

Qld

(A

)

Co

un

try W

A (A

)

Gre

ate

r H

ob

art

Tas (A

)

Ro

ckham

pto

n Q

ld (H

)

Bu

nd

ab

erg

Qld

(H

)

Co

un

try Q

ld (A

)

To

wnsvill

e Q

ld (H

)

Darw

in N

T (H

)

Co

un

try S

A (A

)

Cairns Q

ld (H

)

Canb

err

a A

CT

(A

)

Hunte

r V

alle

y N

SW

(H

)

Balla

rat

Vic

(H

)

Gre

ate

r H

ob

art

Tas (H

)

Gre

ate

r B

risb

ane Q

ld (A

)

Mackay Q

ld (H

)

So

uth

East

SA

(H

)

Co

un

try V

ic (A

)

Decep

tio

n B

ay Q

ld (H

)

Ben

dig

o V

ic (H

)

Gre

ate

r A

dela

ide S

A (A

)

To

ow

oo

mb

a Q

ld (H

)

Co

un

try N

SW

(A

)

So

uth

po

rt Q

ld (H

)

No

osa Q

ld (H

)

Penin

sula

Vic

(A

)

Gre

ate

r B

risb

ane Q

ld (H

)

So

uth

Co

ast

NS

W (H

)

Gre

ate

r P

ert

h W

A (A

)

Surf

ers

Para

dis

e Q

ld (H

)

Austr

alia

(A

)

New

castle N

SW

(H

)

Gre

ate

r A

dela

ide S

A (H

)

Canb

err

a A

CT

(H

)

Geelo

ng

Vic

& S

urr

ou

nd

s (H

)

Centr

al C

oast

NS

W (H

)

Gre

ate

r P

ert

h W

A (H

)

Gre

ate

r M

elb

ourn

e V

ic (A

)

Austr

alia

(H

)

Blu

e M

ounta

ins N

SW

(H

)

Mo

rnin

gto

n V

ic &

Surr

ound

s (H

)

Wo

llong

on

g N

SW

(H

)

Gre

ate

r S

yd

ney N

SW

(A

)

Gre

ate

r S

yd

ney N

SW

(H

)

Gre

ate

r M

elb

ourn

e V

ic (H

)

APARTMENTS (A)

HOUSES (H)

Gross Rental Yields, Australian Key Regional Centres, Houses & Apartments Q3 2016

to September.

Nanjing (43%) and Shanghai (40%) have

usurped the rapid-growing technology

hub of Shenzhen (35%) in the quarter.

Urbanisation and rising household wealth

is behind the surge in Chinese prices but

it is far from uniform with smaller cities

and rural markets lagging behind. China’s

rapidly-rising urban house prices have not

escaped the attention of policymakers

with many cities seeing the tightening of

mortgage lending, higher deposit

requirements, and in some cases, a ban

on non-local buyers.

At this time, Australia’s highest ranking

city was Melbourne in 54th position with

6.9% annual growth. Although by

December 2016, Melbourne median

capital growth shifted to 9.8% annual

growth for houses and 5.0% for

apartments.

-20% -10% 0% 10% 20% 30% 40% 50%

Aberdeen, UK

Moscow, RU

Darwin, AU

Hong Kong HK

Genoa, IT

Durban, ZA

Calgary, CA

Taipei City TW

Jaipur, IN

Palermo, IT

Sevilla, ES

Perth, AU

Nicosia, CY

Rio de Janeiro BR

Marseille, FR

Rome, IT

Quebec, CA

Singapore, SG

Napoli, IT

Limassol, CY

Thessaloniki, GR

Venice, IT

Trieste, IT*

Athens, GR

Halifax, CA

Edmonton, CA

Bologna, IT

Larnaca, CY

Ljubljana, SI

Turin, IT

Lille, FR

Skopje, MK

Florence, IT

Sao Paulo, BR

Zagreb, HR

Wellington, NZ

Montreal, CA

St. Petersburg, RU

Dalian, CN

Malaga, ES

Milan, IT

Tangshan, CN

Edinburgh, UK

Ottawa Gat., CA

Lyon, FR

Jakarta. ID

Kolkata, IN

Shenyang, CN

New York US

Paris, FR

Brussels, BE

Johannesburg, ZA

Zurich, CH

Vienna, AT

Helsinki, FI

Washington, US

Cleveland, US

Tel Aviv, IL

Delhi, IN

Seoul, KR

Adelaide, AU

Brisbane, AU

Sydney, AU

Tokyo, JP

Cape Town ZA

Yantai, CN

Bern, CH

Copenhagen, DK

Boston, US

Madrid, ES

Chicago, US

Chongqing, CN

Winnipeg, CA

Glasgow, UK

Kuala Lumpur, MY

Atlanta, US

Phoenix, US

San Diego, US

Dublin, IE

Minneapolis, US

Canberra, AU

Las Vegas, US

Mexico City MX

San Francisco, US

Bengaluru, IN

Detroit, US

Los Angeles, US

Nottingham, UK

Charlotte, US

Gothenburg, SE

Jerusalem, IL

Bogota, CO

Miami, US

Hobart, AU

Lisbon, PT

Birmingham, UK

Melbourne, AU

Riga, LV

Manchester, UK

Bratislava, SK

Valencia, ES

Chengdu, CN

Rotterdam, NL

Stockholm, SE

Tampa, US

Barcelona, ES

Mumbai, IN

Tallinn, EE

Dallas, US

Porto, PT

Haifa, IL

Kanpur, IN

Hague, NL

Ankara, TR

Denver, US

London, UK

Utrecht, NL

Portland, US

Seattle, US

Ahmedabad, IN

Ningbo, CN

Qingdao, CN

Changsha, CN

Reykjavik, IS

Hamilton, CA

Malmo, SE

Amsterdam, NL

Auckland, NZ

Jinan, CN

Izmir, TR

Kochi, IN

Bristol, UK

Toronto, CA

Lucknow, IN

Istanbul, TR

Oslo, NO

Victoria, CA

Wuhan, CN

Guangzhou, CN

Budapest, HU

Chennai, IN

Vancouver, CA

Zhengzhou, CN

Tianjin, CN

Hangzhou, CN

Wuxi, CN

Beijing, CN

Shenzhen, CN

Shanghai, CN

Nanjing, CN

https://kfcontent.blob.core.windows.net/research/1026/documents/en/q3-2016-4312.pdf



4

Market Trends The value of housing finance

commitments in New South Wales in

the three months ending November

2016 fell by 9.9% on the previous

year, to $21.1 billion.

Building approvals in the three months

ending December totalled 4,115

houses and 8,829 apartments in

Greater Sydney. This is trending 6.0%

lower for houses and 24.1% lower for

apartment approvals compared to the

same period in 2015.

The preliminary auction clearance rate

for the week ending 18 December was

74.1% out of 688 scheduled auctions

in Greater Sydney. This is slightly

higher than the week prior, at 73.7%

from 1168 scheduled auctions, and

higher than the comparable week a

year earlier, when 55.2% (out of 869

auctions) were sold.

Sales transacted in the year to

December tallied 47,102 houses (up

1.0% on previous year) and 46,476

apartments (up 1.8% on prior year).

House values increased 1.1% in the

month of December (rising 4.9% over

the last year) to a median of

$1,117,500. Apartment values rose

1.4% over the same month (rising

5.4% over the year) to record a

median of $725,500.

Over the year to December, rental

growth rose 0.8% for houses and rose

2.7% for apartments. Weekly median

rents are currently achieving $665 for

houses and $565 for apartments.

Greater Sydney total vacancy was last

recorded at 2.0% in December with

1.8% for the inner ring (0-10km), 2.1%

for the middle ring (10-25km) and

2.0% for the outer ring (25km+).

In December, gross rental yields

across Greater Sydney compressed

12 bps (to 3.11%) for houses and 11

bps (to 4.06%) for apartments

compared to the previous year.

Capital Growth, Greater Sydney 12-month rolling

Median Rents & Total Vacancy

Greater Sydney Weekly Rents & Monthly Vacancy

Gross State Product in New

South Wales was recorded at

$531,323 million in the year to

June 2016; 3.4% greater than the prior year.

Unemployment as at

December 2016 stood at 4.7%

for Greater Sydney, trending 30 bps higher than the 4.4%

recorded in December 2015.

Population in Greater Sydney was estimated at 4.9 million

persons in 2015. Greater

Sydney experienced population

growth of 1.7% in the year to

June 2015.

Key Residential Indicators, December 2016

Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Sydney 1,117,500 4.5 4.9 47,102 665 3.11 Houses 1.1

Sydney 725,500 2.8 5.4 46,476 565 4.06 Apartments 1.4

0%

5%

10%

15%

20%

25%

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

$400

$450

$500

$550

$600

$650

$700

$750

$800

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS VACANCY




5

RESEARCH


commitments in Victoria in the three

months ending November 2016 fell by

3.0% on the previous year, to $16.5

billion.


ending December totalled 6,315

houses and 7,979 apartments in

Greater Melbourne. This is trending

3.2% higher for houses but 4.5%

lower for apartment approvals

compared to the same period in 2015.



75.7% out of 1,111 scheduled

auctions in Greater Melbourne. This is

lower than the week prior, at 78.4%

from 1,168 scheduled auctions, but

higher than the comparable week the

year earlier, when 65.7% (out of 1,561

scheduled auctions) were sold.




apartments (up 2.6% on the prior

year).

House values increased 2.0% in the

month of December (growth of 9.8%

over the last year) to a median of

$809,500, while apartment values

rose 0.7% over the month (growth of

5.0% over the year) to record a

median of $520,500.


growth grew 2.2% for houses and




Six-month average total vacancy

trend was recorded at 2.4% in

November for Greater Melbourne;

with 2.3% in the inner ring (0-10km),

3.0% in the middle ring (10-20km) and

2.0% in the outer ring (20km+).


across Greater Melbourne

compressed 21 bps (to 3.00%) for

houses and 5 bps (to 4.24%) for

apartments compared to prior year.


Greater Melbourne Weekly Rents & Monthly Vacancy

Gross State Product in Victoria was recorded at $373,624

million in the year to June 2016;

3.5% greater than the prior year.

Unemployment as at

December 2016 stood at 6.0% for Greater Melbourne, trending

50 bps higher than the 5.5%


Population in Greater

Melbourne was estimated at 4.5 million persons in 2015. Greater

Melbourne experienced

population growth of 2.1% in the year to June 2015.


Greater Region Type

Median

Capital Value

($)

Capital

Growth

Last Month

(%)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Melbourne Houses 809,500 2.0 6.2 9.8 56,172 465 3.00

Melbourne Apartments 520,500 0.7 2.0 5.0 41,449 420 4.24

AUSTRALIAN RESIDENTIAL REVIEW FEBRUARY 2017

Capital Growth, Greater Melbourne 12-month rolling

0%

2%

4%

6%

8%

10%

12%

14%

16%

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

$360

$380

$400

$420

$440

$460

$480

$500

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6





6

House values rose 0.5% in the month

of December (with growth of 2.6%


$513,500 while apartment values fell

1.9% (with a slight fall of 1.0% over

the year) to record a median of

$380,500.


growth remained steady for houses

and fell 1.3% for apartments. Weekly

median rents are currently achieving

$455 for houses and $380 for

apartments.

As new supply reached the market,

total vacancy was last recorded at

4.1% in September for Greater

Brisbane; with 3.7% for the inner ring

(0-5km), 4.5% for the middle ring (5-

20km) and 2.2% for the outer ring

(20km+).


across Greater Brisbane compressed





Greater Brisbane Weekly Rents & Quarterly Vacancy

Gross State Product in

Queensland was recorded at

$314,569 million in the year to

June 2016; 1.5% greater than the prior year.

Unemployment as at

December 2016 stood at 5.7% for Greater Brisbane, trending



Population in Greater Brisbane

was estimated at 2.3 million


Brisbane experienced

population growth of 1.6% in

the year to June 2015.


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Brisbane 513,500 1.7 2.6 43,622 455 4.65 Houses 0.5

Brisbane 380,500 -1.8 -1.0 21,197 380 5.22 Apartments -1.9

Capital Growth, Greater Brisbane 12-month rolling

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

$300

$320

$340

$360

$380

$400

$420

$440

$460

$480

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6



commitments in Queensland in the

three months to November 2016 grew

by 8.2% on the previous year, to $10.5

billion.


to December totalled 2,969 houses

and 2,157 apartments in Greater

Brisbane. This is trending 2.6% higher

for houses but 58.9% lower for

apartment approvals compared to the

same period in 2015.




in Greater Brisbane. This is higher than

the week prior, at 43.5% from 206

scheduled auctions, but slightly lower

than the comparable week the year

earlier, when 46% (out of 180

scheduled auctions) were sold.








7

RESEARCH

10,232 apartments (down 3.3% on

prior year).

House values were recorded at a

median of $510,000, increasing 0.8%

in the month of December but

decreasing 3.2% over the last year.

Apartment values fell 0.4% over the

month, down 8.2% over the year, to

record a median of $410,500.


growth was down 5.7% for houses

and down 12.3% for apartments.

Weekly median rents are currently


apartments.

Across the Greater Perth area, total

vacancy was recorded at 6.6% in

September; up from six months

earlier.


across Greater Perth compressed 9

bps (to 4.21%) for houses and down

21 bps (to 4.51%) for apartments



Greater Perth Weekly Rents & Quarterly Vacancy


Western Australia was recorded at $255,214 million in the year to

June 2015; 4.5% greater than

the prior year.

Unemployment as at

December 2016 stood at 7.7% for Greater Perth, trending 100

bps higher than the 6.7%


Population in Greater Perth was

estimated at 2.0 million persons

in 2015. Greater Perth

experienced population growth of 1.6% in the year to June

2015.


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Perth 510,000 2.5 -3.2 22,306 410 4.21 Houses 0.8

Perth 410,500 -1.6 -8.2 10,232 355 4.51 Apartments 0.4


Capital Growth, Greater Perth 12-month rolling

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$300

$350

$400

$450

$500

$550

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6



commitments in Western Australia in

the three months to November 2016

fell by 10.1% on the previous year, to

$6.1 billion.



and 1,444 apartments in Greater

Perth. This is trending 20.2% lower for

houses but 5.2% higher for apartment

approvals compared to the same

period in 2015.



30% out of 20 scheduled auctions in

Greater Perth. This is higher than the

week prior, at 20% from 76 scheduled

auctions, but lower than the

comparable week the year earlier,

when 40% were sold.


December tallied 22,306 houses

(down 6.9% on previous year) and




8


commitments in South Australia in the

three months to November 2016 grew

by 5.5% on the previous year, to $3.3

billion.



and 711 apartments approved in

Greater Adelaide. This is trending

7.2% lower for houses and 33.2%

lower for apartment approvals




61.4% out of 83 scheduled auctions in

Greater Adelaide. This is higher than

the week prior, at 58.3% from 156

scheduled auctions, and higher than

the comparable week the year earlier,

when 51.6% (out of 151 scheduled

auctions) were sold.





House values were up 0.9% in the

month of December (rising by 2.9%


$455,500. Apartments fell 0.3% over

the month to record a median of

$321,500 (rising 0.9% over the past

year.


growth rose for houses (up 2.7%) and

remained steady for apartments.

Weekly median rents are currently

achieving $385 for houses and $310

for apartments.


across Greater Adelaide compressed




Median Rents, Greater Adelaide

Weekly Rents

Gross State Product in South

Australia was recorded at $101,096 million in the year to


the prior year.

Unemployment as at

December 2016 stood at 8.2% for Greater Adelaide, trending



Population in Greater Adelaide

was estimated at 1.3 million


Adelaide experienced




Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Adelaide 455,500 2.8 2.9 22,962 385 4.40 Houses 0.9

Adelaide 321,500 0.3 0.9 5,740 310 5.00 Apartments -0.3

Capital Growth, Greater Adelaide 12-month rolling

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS

$250

$270

$290

$310

$330

$350

$370

$390

$410

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS




9

RESEARCH


commitments in the Australian Capital

Territory in the three months to

November 2016 fell by 3.5% on the

previous year, to $1.1 billion.


to December totalled 258 houses and

1,019 apartments in the ACT. This is

trending 15.7% higher for houses and

153.5% higher for apartment


period in 2015.




in Canberra. This is higher than the

week prior, at 60.8% from 118

scheduled auctions, and higher than

the comparable week the year earlier,

when 48.6% were sold.




apartments (down 23.6% on prior

year).

House values rose 0.2% in the month

of December (with growth of 4.2%


$601,500. Apartment values rose

0.6% over the month (up 3.6% over

the year) to record a median of

$416,000.


growth grew 2.0% for houses and




Total vacancy in Canberra was last

recorded at 1.3% in September; down

120 bps on the previous quarter and

250 bps lower compared to the prior

year.


across Canberra fell 8 bps (to 4.49%)

for houses and grew by 11 bps (to

5.34%) for apartments compared to

the previous year.


Canberra Weekly Rents & Quarterly Vacancy

Gross State Product in the

ACT was recorded at $36,225

million in the year to June 2016;

2.4% greater than the prior year.

Unemployment as at December 2016 stood at 3.3%

for the ACT, trending 70 bps

lower than the 4.0% recorded in

December 2015.

Population in the ACT was

estimated at 391,000 persons in

2015. The ACT experienced




Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Canberra 601,500 1.6 4.2 4,857 515 4.49 Houses 0.2

Canberra 416,000 1.1 3.6 2,947 425 5.34 Apartments 0.6


Capital Growth, Canberra 12-month rolling

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

$350

$375

$400

$425

$450

$475

$500

$525

$550

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6





10


commitments in Tasmania in the three

months to November 2016 grew by

19.1% on the previous year, to $724.9

million.



28 apartments in Greater Hobart. This

is trending 1.6% lower for houses and

40.4% lower for apartment approvals





Greater Hobart. This was higher than

the previous week when 28.6% of 23

scheduled auctioned were sold.


December tallied 2,637 houses (down

7.5% on previous year) and 826

apartments (down 11.0% on prior

year).

House values grew 2.8% in the month

of December (rising 7.3% over the last

year) to a median of $409,000.

Apartments rose 2.7% over the month

(up 6.5% over the year) to record a

median of $288,000.


growth rose 9.7% for houses and




Greater Hobart total vacancy was last

recorded at 2.4% in September; down

20 bps on the previous quarter and

down 40 bps compared to the prior

year.


across Greater Hobart increased 6

bps for houses (to 5.01%) and rose 6

bps for apartments (to 5.58%)



Greater Hobart Weekly Rents & Quarterly Vacancy


Tasmania was recorded at $26,039 million in the year to


the prior year.

Unemployment as at

December 2016 stood at 5.9% for Greater Hobart, trending 30

bps lower than the 6.2%


Population in Greater Hobart was estimated at 221,000

persons in 2015. Greater Hobart

experienced population growth

of 0.8% in the year to June 2015.


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Hobart 409,000 6.2 7.3 2,637 395 5.01 Houses 2.8

Hobart 288,000 2.1 6.5 826 310 5.58 Apartments 2.7

Capital Growth, Greater Hobart 12-month rolling

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

$200

$250

$300

$350

$400

$450

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6





11

RESEARCH


commitments in the Northern Territory

in the three months to November 2016

fell by 20.7% on the previous year, to

$278.0 million.



54 apartments in Greater Darwin. This

is trending 16.4% lower for houses

and 83.0% lower for apartment


period in 2015.




Greater Darwin. This was lower than

the previous week when 40% of 7

scheduled auctioned were sold.



8.3% on previous year) and 519


House values fell 1.3% in the month

of December (down 10.1% over the

last year) to a median of $513,500.

Apartments fell 0.7% over the month

(down 10.6% over the year) to record

a median of $357,500.


growth was down 7.8% for houses

and 10.1% for apartments. Weekly

median rents are currently achieving


apartments.

Greater Darwin total vacancy was last

recorded at 6.7% in September; up

30 bps on the previous quarter but

trending down 80 bps compared to

the prior year.


across Greater Darwin compressed

13 bps (to 5.43%) for houses and

grew 8 bps (to 5.87%) for apartments

compare to previous year.


Greater Darwin Weekly Rents & Quarterly Vacancy

Gross State Product in the

Northern Territory was recorded at $23,648 million in the year to


the prior year.

Unemployment stood at 3.0%

in Greater Darwin as at

December 2016, trending 30

bps higher than the 3.3% recorded in December 2015.

Population in Greater Darwin

was estimated at 142,000 persons in 2015. Greater Darwin

experienced population growth

of 1.9% in the year to June

2015.


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Darwin 513,500 -2.5 -10.1 1,181 535 5.43 Houses -1.3

Darwin 357,500 -3.2 -10.6 519 400 5.87 Apartments -0.7


Capital Growth, Greater Darwin 12-month rolling

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6

HOUSES APARTMENTS

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

$300

$350

$400

$450

$500

$550

$600

$650

Dec-1

4

Mar-

15

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

Sep

-16

Dec-1

6





Knight Frank Research provides strategic

advice, consultancy services and forecasting

to a wide range of clients worldwide

including developers, investors, funding

organisations, corporate institutions and the

public sector. All our clients recognise the

need for expert independent advice

customised to their specific needs.

First Home Buyer

Incentives Guide

September 2016

Global House Price

Index

Q3 2016

The Wealth Report

2016

Knight Frank Research Reports are available at KnightFrank.com.au/Research

Global Residential

Cities Index

Q3 2016

Important Notice

© Knight Frank Australia Pty Ltd 2017 – This report is published for general information only and not

to be relied upon in any way. Although high standards have been used in the preparation of the

information, analysis, views and projections presented in this report, no responsibility or liability

whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from

any use of, reliance on or reference to the contents of this document. As a general report, this material

does not necessarily represent the view of Knight Frank Australia Pty Ltd in relation to particular

properties or projects. Reproduction of this report in whole or in part is not allowed without prior

written approval of Knight Frank Australia Pty Ltd to the form and content within which it appears.

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Michelle Ciesielski

Director

+61 2 9036 6659

[email protected]

Matt Whitby

Group Director

Head of Research and Consultancy

+61 2 9036 6616

[email protected] RESIDENTIAL AND

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